Our Approach
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Our Approach

Upper Canada Equity Fund co-invests in early stage enterprises through a unique private-public model for impact investing.

 

investment objectives

  • Provide patient equity capital for the start-up, growth and expansion of innovative businesses
  • Contribute to the economic diversification and sustainability of the region
  • Create long-term employment, high value jobs and opportunities for youth to return to rural life
  • Develop a mechanism for public-private partnership in the commercialization of innovation
  • Achieve long-term capital appreciation through identification, selection and nurture of investment opportunities

investment strategy

Upper Canada Equity Fund invests in companies that:

  • Are in the seed, early, or expansion stage of development
  • Create employment opportunities in Prince Edward County and neighbouring Lennox & Addington County
  • Require an equity investment between $250-500K
  • Operate in knowledge-based industries with high growth potential

In selecting investment opportunities, the following factors are considered:

  • The particular industry, markets, products, services and technology
  • The competitive position
  • The experience of management personnel
  • The past performance and business plan
  • Financial statements, projections and forecasts
  • The regulatory environment
  • The expectation of generating new employment opportunities
  • Opinions and information about the business and its prospects from consultants, customers, suppliers, bankers, and financial advisors
  • Opinions of analysts and technical consultants, as may be required, and market surveys where applicable

Prospective investments are expected to demonstrate some or all of the following characteristics:

  • An experienced management team which is committed to the company’s success
  • A strong competitive position as a result of superior technology, innovative products, comparative cost advantage, established market position, and/or significant barriers to entry
  • For start up or early stage funding, a sound business concept or plan which presents a convincing opportunity to establish a comparative business advantage in a growth market
  • For expansion funding, a reasonable expectation of earnings growth based on past financial performance and/or a strong likelihood of new market success

The fund reduces overall risk through diversification of investments in various industry sectors, including but not limited to:

  • Information Technology
  • Communications
  • New Media
  • Environmental and Energy Technologies
  • Biotechnology

An important element of the investment strategy is the creation of value that occurs after the initial investment is made. Upper Canada Equity Fund and its co-investors work closely with portfolio companies in the development of business strategies, assembly of management teams and boards of directors, identification and pursuit of strategic partners and execution of business plans.